Aluminium prices hit their five-week high on Tuesday on increased fund buying and a shortage of raw material in top producer China.

Three-month aluminium on the London Metal Exchange earlier touched $2,482 per metric ton, the highest since July 15. It last traded 1% up at $2,470 at 1028 GMT.

The momentum continued after a strong rally of 3.4% in the previous session breaking the 50-day moving average.

"Aluminium was too cheap one month ago. Funds are picking up, now the rally is restoring its fair value." Daniel Smith with Amalgamated Metal Trading Ltd said.

Negative sentiment is fading from investors, with some commodity trading advisor (CTA) funds starting to build a net-long position in the light metal, he said.

Also supporting aluminium prices are China's surprising growth in import despite robust domestic production, Smith said.

China brought 129,898 tonnes of primary aluminium in July, up 11.5% year on year, customs data showed on Tuesday.

Meanwhile, the raw material of making aluminium became costlier. China's alumina futures hit a near three-month high due to rising consumption. Cuts in alumina refineries of Alcoa and Rio Tinto in Australia also strained supply.

Over 30% of alumina inventories were withdrawn from warehouses in monitored by Shanghai Futures Exchange (ShFE) in the past three weeks, as profit in making primary aluminium improved.

LME copper rose 0.1% to $9,461.50 a ton, nickel increased 1% to $16,825, zinc edged up 1.2% at $2,819, tin was up 0.6% at $32,760 and lead advanced 1% to $2,060.

(Reporting by Julian Luk in London; editing by David Evans)